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Franklin Templeton Enables Peer-to-Peer Share Transfers for OnChain U.S. Government Money Fund

Each fund share is represented by a BENJI token, available on the Stellar and Polygon. The fund's transfer agent keeps the official share ownership record using a proprietary system integrating blockchain technology to record transactions.

  • Franklin Templeton announces peer-to-peer transferability of its Franklin OnChain U.S. Government Money Fund shares by BENJI tokens.
  • Franklin Templeton’s fund faces stiff competition from BlackRock’s BUIDL fund, which has captured 25% of the market shortly after its launch.

On April 25, Franklin Templeton, one of the largest investment managers globally, announced that the Franklin OnChain U.S. Government Money Fund shares can now be transferred peer-to-peer on the public blockchain.

Each share of the Fund is represented by a BENJI token, available on the Stellar (XLM) and Polygon (MATIC) blockchains. The Fund's transfer agent keeps the official share ownership record using a proprietary system integrating blockchain technology to record transactions. As of March 31, 2024, the Fund had more than $360 million in assets under management.

“Eventually, we hope for assets built on blockchain rails, such as the Franklin OnChain U.S. Government Money Fund, to work seamlessly with the rest of the digital asset ecosystem,” said Roger Bayston, Head of Digital Assets at Franklin Templeton.

The Fund provides a competitive yield as a regulated 1940 Act fund, investing at least 99.5 percent of its assets in government securities, cash, and fully collateralized repurchase agreements. Its investment goal is to deliver high current income while preserving shareholder capital and liquidity, striving to keep a stable share price of $1.00.

The Franklin OnChain U.S. Government Money Fund was launched in 2021 and it was the first U.S.-registered fund to utilize a public blockchain for transaction processing and share ownership recording.

However, per a report, the fund faces intense competition from BlackRock’s recently introduced BlackRock USD Institutional Digital Liquidity (BUIDL) fund. Tokenized on Ethereum in collaboration with Securitize, the BUIDL fund has quickly secured 25% of the market, amassing $304 million in assets within a month of its launch, challenging Franklin Templeton’s dominance. 

Franklin Templeton's fund, which primarily invests in government securities to provide competitive returns and maintain a stable $1 share price, is accessible through the Benji Investments Android and iOS app. 


Edited by Harshajit Sarmah

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